§ Mr. Donald Stewart
asked the Lord Privy Seal what the £1 million that the United Kingdom contributed to the Inter-American Development Bank loan to El Salvador is to be spent on; and what guarantees he has that the money will be spent as intended.
§ Mr. Neil Marten
Governments belonging to international financial institutions such as the Inter-American Development Bank make contributions to their general resources, and not for use in individual countries.
The loan to El Salvador of about £24 million—$40.4 million—is from the banks fund for special operations. This is to provide agricultural credit through approximately 250 co-operatives to about 64,000 poorer families. The bank itself is administering the loan and so is responsible to its boards of governors and of executive directors for seeing that the money is spent as intended.